March 06, 2022 (MLN): After a turbulent week due to the Russia-Ukraine crisis, the market showed a recovery trend this week following the announcement of the Prime Minister’s aid package, which cut petrol prices by Rs 10/litre while electricity rates were revised by Rs5/unit dropped to next year’s budget alongside the announcement of yet another amnesty scheme to boost industrial investment.
Tensions between Russia and Ukraine curtailed overall gains as oil prices soared above $115/barrel on concerns over supply chain disruptions, according to a report by BMA Capital.
In addition, news of the worsening trade deficit, the trade disruption with Ukraine, the approximately 16% increase in gas prices and a 5% year-on-year decline in cement shipments from February 22 further dampened investor interest, putting pressure on the local stock market. increased from 43,984 points to 44,803 points before closing at 44,551 points, an increase of 567 points or 1.3% WoW.
In USD terms, the index rose 1.07% from last week.
From the sector-specific lens, oil and gas exploration, technology, fertilizer, chemicals, and power generation and distribution kept the index on green ground as they added 402, 129, 111, 24 and 16 points to the index, respectively.
In contrast, cement, oil and gas marketing companies, auto, insurance and leather and tanneries collectively took 109 points off the stock during the week.
Scrip-wise, PPL, OGDC, TRG, POL and EFERT were the best performing stocks during the week as they added 533 points to the index, while LUCK, MCB, PSO, DGKC and DAWH eroded 124 points from the index.
Meanwhile, the KSE All Share market cap increased by Rs122.2 billion or 1.62% over the course of the week, registering at Rs7.66 trillion compared to a market cap of Rs7.5tr registered last week.
In terms of flow, foreigners were the net sellers during the week, selling shares worth $0.96 million, compared to net sales of $3.2 million last week, largely supported by foreign companies to the tune of $2. ,2 million. Big sales were seen in the OMCs ($1.5 million), banks ($1.4 million) and cement ($0.7 million) sectors.
On the local side, the bulk of purchases were reported by banks and brokers, amounting to $2.4 million and $2.1 million, respectively. Mutual funds, however, were on the other side with net sales of $1.72 million.
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